ESOP, RSU Tax Calculator

An Employee Stock Option Plan (ESOP) gives employees the right to purchase company shares at a predetermined price, subject to the applicable terms and conditions.

A Restricted Stock Unit (RSU) is a form of employee compensation where shares are granted to an employee after meeting specified vesting conditions.

Perquisite tax is the tax applicable on the taxable benefit received by an employee when ESOPs are exercised or RSUs are vested.

The taxable benefit is generally based on the difference between the fair market value and the applicable exercise price.

Yes. ESOPs and RSUs may be taxable as a perquisite when the shares are exercised or vested, and any subsequent gain or loss on sale is generally taxable as a capital gain or loss.

Capital gain is generally calculated by comparing the sale value of the shares with their applicable cost of acquisition.

The holding period determines whether the gain is treated as short-term or long-term.

ESOPs generally involve an exercise price paid by the employee, while RSUs are generally received without an exercise price. The applicable perquisite and capital gains calculations therefore differ.

Yes. The holding period can determine whether the subsequent sale results in a Short-Term Capital Gain (STCG) or Long-Term Capital Gain (LTCG), depending on the type and status of the shares.

Yes. The selected tax regime can affect the tax applicable to the perquisite arising from ESOPs or RSUs. Capital gains on the subsequent sale are taxed according to the applicable capital gains provisions.